Correlation Between China Minmetals and Iat Automobile
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By analyzing existing cross correlation between China Minmetals Rare and Iat Automobile Technology, you can compare the effects of market volatilities on China Minmetals and Iat Automobile and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Minmetals with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Iat Automobile.
Diversification Opportunities for China Minmetals and Iat Automobile
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Iat is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology and China Minmetals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Minmetals Rare are associated (or correlated) with Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of China Minmetals i.e., China Minmetals and Iat Automobile go up and down completely randomly.
Pair Corralation between China Minmetals and Iat Automobile
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 0.53 times more return on investment than Iat Automobile. However, China Minmetals Rare is 1.9 times less risky than Iat Automobile. It trades about -0.26 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.24 per unit of risk. If you would invest 3,104 in China Minmetals Rare on October 11, 2024 and sell it today you would lose (299.00) from holding China Minmetals Rare or give up 9.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Iat Automobile Technology
Performance |
| Timeline |
| China Minmetals Rare |
| Iat Automobile Technology |
China Minmetals and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Iat Automobile
The main advantage of trading using opposite China Minmetals and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Iat Automobile can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Iat Automobile will offset losses from the drop in Iat Automobile's long position.| China Minmetals vs. Guocheng Mining Co | China Minmetals vs. SSAW Hotels Resorts | China Minmetals vs. Qtone Education Group | China Minmetals vs. Chengtun Mining Group |
| Iat Automobile vs. China Minmetals Rare | Iat Automobile vs. Top Choice Medical | Iat Automobile vs. Anhui Tongguan Copper | Iat Automobile vs. Xiangyu Medical Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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